Calculating Your Investment IQ (2)

3. Buy-and-Hold


continues to be the proper investment strategy for most individual investors, especially if automatic reinvestment of income is part of the package.



4. It's a better Investment-


Income Strategy to buy shorter duration corporate and municipal bonds (rather than higher yielding long-term debt) because the market value doesn't fluctuate as much with anticipated changes in the direction of interest rates, and that is the most important concern with income investing.




5. If an investor can learn to control his own Greed and Fear, he will have a much better chance of investing successfully.




6. Asset Allocation is a strategy used by investors to move assets from weak market sectors to strong ones in order to improve the growth of the Investment Portfolio's bottom line.